EU to Explore Ethereum and Solana for Digital Euro, Diversifying from US Stablecoins

The European Union is exploring the possibility of running the digital euro on public blockchains like Ethereum or Solana, shifting away from private, closed systems. This move would make the digital euro more interoperable with existing crypto infrastructure, but also increases the risk of government influence over blockchain governance. The ECB has yet to decide on a model, with a decision expected by the end of 2025.

The European Union is accelerating its plans for a digital euro, with a significant shift in focus towards public blockchains like Ethereum and Solana. This move aims to enhance the euro's global payment relevance amidst the growing dominance of dollar-pegged stablecoins and the rise of digital currencies from other major economies, such as China's digital yuan and the UK's digital pound [1].

The decision to explore public blockchains is a response to the U.S. passing the GENIUS Act, a regulatory framework for the stablecoin market. This legislation has prompted the EU to reevaluate its approach to digital currencies, as dollar-pegged stablecoins like Tether's USDT and Circle's USDC could potentially shift euro deposits into U.S.-based assets, threatening Europe's financial sovereignty [2]. The ECB is now considering both centralized and decentralized models, with a particular focus on public blockchains to improve cross-border interoperability [3].

Running the digital euro on a public blockchain could enhance its adoption and circulation, especially for cross-border transactions. However, concerns remain about transparency and data visibility, as public blockchains are more open than private, centralized systems. The ECB is currently evaluating both approaches, with a decision expected by the end of 2025 [3].

The strategic pressure on the EU is intensifying as other major economies advance their own CBDC plans. China has already rolled out its digital yuan, and the UK is exploring a "digital pound." These developments underscore the growing global competition in the digital money arena. The ECB's executive board member, Piero Cipollone, has warned that the expansion of dollar-backed stablecoins risks undermining Europe's financial stability and autonomy by shifting euro deposits overseas and further embedding the U.S. dollar in international transactions [2].

The push for a digital euro is no longer just a technological experiment but a matter of economic and geopolitical necessity. The ECB's openness to public blockchains marks a significant step in this direction, as officials seek a model that balances security, privacy, and global competitiveness. The outcome of these discussions will play a key role in shaping the future of the euro in the digital age.

References:
[1] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro Strategy (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)
[2] Europe accelerates digital euro plans amid rampant US stablecoins (https://www.paymentscardsandmobile.com/europe-accelerates-digital-euro-plans-amid-rampant-us-stablecoins/)
[3] EU looks at public blockchains like Ethereum and Solana for digital euro (https://cryptobriefing.com/digital-euro-blockchain-eu-plans/)